Why Would KBC want to keep me on a split mortgage
- Thread starter engodel
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ChicagoGirl
New Member
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I’m another KBC struggling to get off a split despite several years of trying and overpaying. Like other posts mentioned it started with “not possible”, then moved to “over pay and we will review” then ”pay off the active loan and we will review” and the latest is that it is “not possible as the restructure included an extended term and it is not possible to remove the split but leave the extended term in place” which is what I am looking for. Interestingly I’ve never had a reply in writing, only a phonecall from them after writing to them.
I’ll be very interested to hear if you get a response from KBC or the Central Bank.
I’ll be very interested to hear if you get a response from KBC or the Central Bank.
Hey,ye I wonder if the central bank will get involved but I doubt it they really should the amount of people it's affecting,I hope you get sorted with them I understand your frustration it's a nightmare trying to get an answer from them as you speak to one person and then you get transferred to another person to get told someone will ring you back.
TheGoodTheBad
Registered User
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0% interest rate sounds great. The only drawback is referring to your credit rating, while it is still referred to as a tranche 2, it may then be noted as (M) moratorium, for the remaining duration of the mortgage. Which can impact ability to get further credit.
Brendan Burgess
Founder
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OK
I spoke to KBC. In summary...
1) You have a contractual right to exit your split mortgage at any time.
2) They have to make sure that you fully understand the implications so they send you a letter recommending that you get independent financial advice and they ask you to sign a letter saying that you understand the implications.
I thought that banks would set any overpayments against the warehouse, but in fact, the banks generally seem to be allocating any overpayments against the active mortgage - which, of course, is much better for the customer.
In their experience, people want to get rid of the warehouse for the wrong reasons. People say "I don't want to reach 70 and find myself still with a mortgage hanging over me."
KBC explains that even still it makes sense to clear the interest-bearing part first. If you overpay that, it will be cleared well before the person reaches 70. And then they can start clearing down the warehoused part.
The last thing KBC wants, for themselves and for the borrower, is for a borrower to exit the split mortgage, only to be surprised by the increased repayments and then to fall into arrears again.
But if you choose to exit the split mortgage, KBC has no choice but to comply with your choice.
Brendan
I spoke to KBC. In summary...
1) You have a contractual right to exit your split mortgage at any time.
2) They have to make sure that you fully understand the implications so they send you a letter recommending that you get independent financial advice and they ask you to sign a letter saying that you understand the implications.
I thought that banks would set any overpayments against the warehouse, but in fact, the banks generally seem to be allocating any overpayments against the active mortgage - which, of course, is much better for the customer.
In their experience, people want to get rid of the warehouse for the wrong reasons. People say "I don't want to reach 70 and find myself still with a mortgage hanging over me."
KBC explains that even still it makes sense to clear the interest-bearing part first. If you overpay that, it will be cleared well before the person reaches 70. And then they can start clearing down the warehoused part.
The last thing KBC wants, for themselves and for the borrower, is for a borrower to exit the split mortgage, only to be surprised by the increased repayments and then to fall into arrears again.
But if you choose to exit the split mortgage, KBC has no choice but to comply with your choice.
Brendan
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